The minister didn’t use the word ‘increase’ but asked the NBR to ‘carefully consider’ the sectors while fixing taxes.
Finance Minister AMA Muhith suggested increasing taxes on SIM card, tobacco products and import of vehicles as these sectors could boost revenue collection.
The minister, however, didn’t use the word “increase” but asked the NBR to “carefully consider” the sectors while fixing taxes.
He also announced the target to raise 18% of gross domestic product in next five years from the current 13%.
“Taxes constitute 13% of GDP now. We target to raise it to 18% by the end of the present government’s tenure.”
He said the government is losing a huge amount of revenue from the import of vehicles.
“There are complexities regarding the import duty on vehicles. NBR should take step to reduce the complexities,” Muhith said.
He added the NBR should also see into the tobacco products more strictly as they cause damage to human health.
“Bidi industry no longer exists in the country. It is now producing cigarette. NBR should think of this industrial shift while deciding about taxes.”
SIM card is another matter finance minister focused on while talking about next fiscal’s budget during the meeting.
Finance minister said the facilities to protect local industries will continue and called on the entrepreneurs to make the best use of those facilities.
Besides, the finance minister alleged that the businessmen were getting back the money which they had to pay as advanced income tax to NBR.
“Although the businessmen are entitled to have refund of their advance payment not used, they are not getting it.”
He called for creating a separate fund in this regard.
Source: Dhaka Tribune
Apart from everything else, the import of motor cars should be given a little bit more care. While the streets of the city are already overcrowded with private cars, import of more cars will just complicate things. There must be a policy of import of motor cars. The rate of taxes should be 25% more every year with increase of ‘age’ of the vehicles. Then statistics should be taken how many cars and other vehicles are being withdrawn from the streets. As random import must worsen the traffic chaos of the country, the govt may compensate the ‘loss’ in revenue by increasing taxes on the ageing vwhicles. Besides, the duty on the import of vehicles should be enhanced. The IT clearance should also be made mandatoy to buy private cars. To ease the traffic congestion, govt should take good care to introduce public transport system in the cities, especially in the capital.